ENTERPRISE LEVEL WASTE Joe Mize, MIT Alexis stanke. MIIt The elimination of waste" is one of the fundamental tenets of " lean thinkin Waste"may be defined as"any action, process or activity that consumes resources and does not directly add value for a stakeholder. We will first review how waste is traditionally viewed when value stream maps are developed within production operations. We will then consider comparable wastes considered when performing enterprise- level value stream mapping and analys must be within information systems. There are other wastes at the enterprise level that must be Waste in Production Operations Traditional value stream mapping efforts have been performed primarily production operations. The developers of the Toyota Production System identified se basic categories of waste condition caused by(1)a production operation waiting for maintenance, for material/parts from previous operation, tooling, operator readiness, etc, or(2)production parts waiting in a queue(perhaps in batches) Transportation: Excessive movement of materials/tools between production operations, between facilities, or to and from storage Over-Processing: Using oversized equipment or equipment not designed for the task at hand, thereby requiring excess running time and costs; using equipment that has not been properly maintained, thereby requiring excess processing Excessive Inventory: Maintaining stocks of raw materials in excess of current production requirements; or stocks of finished goods in excess of current demand; or stocks of work in progress as buffers between un- ynchronized production operations Unnecessary Motion: Human actions/motions beyond the minimum required to achieve the task at hand, i. e, tasks which, in themselves, do not add value Defective Products: Parts, materials, sub-assemblies or products that do not meet specifications and which must be scrapped or reworked to bring into conformance Overproduction: Producing more than is required or producing before required any work performed which is not" pulled"by the next stakeholder in the value stream Enterprise Level Waste 10/20/200ENTERPRISE LEVEL WASTE Joe Mize, MIT Alexis Stanke, MIT The elimination of “waste” is one of the fundamental tenets of “lean thinking”. “Waste” may be defined as “any action, process or activity that consumes resources and does not directly add value for a stakeholder”. We will first review how waste is traditionally viewed when value stream maps are developed within production operations. We will then consider comparable wastes within information systems. There are other wastes at the enterprise level that must be considered when performing enterprise-level value stream mapping and analysis Waste in Production Operations Traditional value stream mapping efforts have been performed primarily in production operations. The developers of the Toyota Production System identified seven basic categories of waste: • Waiting: A condition caused by (1) a production operation waiting for maintenance, for material/parts from previous operation, tooling, operator readiness, etc., or (2) production parts waiting in a queue (perhaps in batches). • Transportation: Excessive movement of materials/tools between production operations, between facilities, or to and from storage. • Over-Processing: Using oversized equipment or equipment not designed for the task at hand, thereby requiring excess running time and costs; using equipment that has not been properly maintained, thereby requiring excess processing. • Excessive Inventory: Maintaining stocks of raw materials in excess of current production requirements; or stocks of finished goods in excess of current customer demand; or stocks of work in progress as buffers between un￾synchronized production operations. • Unnecessary Motion: Human actions/motions beyond the minimum required to achieve the task at hand, i.e. tasks which, in themselves, do not add value. • Defective Products: Parts, materials, sub-assemblies or products that do not meet specifications and which must be scrapped or reworked to bring into conformance. • Overproduction: Producing more than is required or producing before required; any work performed which is not “pulled” by the next stakeholder in the value stream. Enterprise Level Waste 10/20/2002 2